Venezuelan Opposition Seeks to Block Sale of Citgo Assets

(Bloomberg) -- The Venezuelan opposition led by National Assembly leader Juan Guaido is seeking to block the sale of assets of Citgo Holding Inc., an international unit of PDVSA, to satisfy a $1.4 billion creditor judgment for Canadian mining company Crystallex International Corp.

In a filing Wednesday in federal court in Delaware, the opposition group asked for relief from a previous ruling authorizing the sale based on the overseas units’ control by the Venezuelan regime of President Nicolas Maduro. The opposition, which has been recognized by the U.S. government, said circumstances had changed because it could now safeguard the independence of the assets.

“Citgo and PDV Holding Inc. are independent companies from the Republic of Venezuela,” Guaido’s ambassador to Washington Carlos Vecchio said in a telephone interview. “We ask the judge to evaluate his decision with these new facts.”

The opposition is also arguing that the U.S. Office of Foreign Asset Control, OFAC, prohibits any creditor from seizing Venezuelan assets abroad, including Citgo. “No process of sale of our assets can be started. To do it, an OFAC license is required,” Vecchio said.

The U.S. Supreme Court already declined to hear the case last month, leaving intact a federal appeals court ruling in favor of Crystallex.

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